It’s been said that small businesses help America exist. Perhaps it’s true, especially in the end days of a recession. You can thank small businesses for bringing back the job market, and helping our economy recover. While the big-box corporations employee many, it’s small businesses that help bring communities alive, and keep it going throughout good and bad times. This is great for existing merchants, and for those who are looking forward to entering the business world. And while times are good for business growth, sometimes small businesses need extra funding to get started. This, however, it soften easier said than done.

Even though small businesses help build economies, they are also risky. This puts small business merchants in a tough spot when they need financing. Even the most established businesses can have issues obtaining a loan. A loan is something that merchants should steer clear of, regardless of their industry. With a loan, you are expected to start repayments almost immediately, without thought given to your businesses well-being. Even if your business is still losing money, you have to repay the loan. There is an alternative open to “high risk” and traditional businesses, called a “cash advance”, which should be looked into as a safer alternative.

With a cash advance, be it a startup cash advance or a cash advance or an established business, you should do your homework. Not all who offer this service cater to all types of merchants, so be careful whom you apply with. By applying with the wrong company, you are prolonging your wait time, and this can be costly to your business. For example, FAM caters to merchants who have a credit score below 500. This is something that most others do not do. This is important for those who are still suffering credit effects from the recession, and have yet to fully recover their FICO score. Also, unlike a bank loan a cash advance is paid back from your merchant account when your close out your POS daily, with a set percentage agreed upon with your provider.

While small businesses are growing, and adding jobs to our market, they are still a risky business operation. Before taking out a bank loan for extra cash, be sure to look into a cash advance as an alternative.

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